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Economic Sectors and the Risk-taking Channel of Monetary Policy

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  • Martha López Piñeros

    (Senior Researcher, Research Unit, Banco de la República, Bogotá D.C.- Colombia)

Abstract

This paper contributes to the empirical literature of the risk-taking channel of mo-netary policy and enhance the range of the analysis in terms of studying which economic sectors are more vulnerable to it. We use loan level microdata for 3019 Colombian firms be-tween 2005:1 and 2014:3. our results show strong evidence of the channel for the economy as a whole and a stronger effect in the agriculture and services sectors for ex-ante risky firms. These results are supported also for ex post credit risk. The firms affected the most are the less profitable and the less leveraged.

Suggested Citation

  • Martha López Piñeros, 2020. "Economic Sectors and the Risk-taking Channel of Monetary Policy," Cuadernos de Economía - Spanish Journal of Economics and Finance, Asociación Cuadernos de Economía, vol. 43(123), pages 275-290, Noviembre.
    • Handle: RePEc:cud:journl:v:43:y:2020:i:123:p:275-290
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    More about this item

    Keywords

    Monetary policy; Credit risk; Supply of credit; Bank capital; Financial stability;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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